In today’s complex regulatory environment, governance, risk, and compliance (GRC) leaders are under more pressure than ever to demonstrate the effectiveness of their programs. Yet many firms still struggle with one crucial question: How do you measure GRC success?
Tracking the right metrics and key performance indicators (KPIs) is essential. Not only do they help you identify gaps and prioritize resources, but they also provide leadership and regulators with concrete evidence of oversight and accountability.In this guide, we break down the top 10 GRC metrics and KPIs every compliance leader should track — plus tips on automating and visualizing them for maximum impact.
1. Policy and Procedure Exception Rate
What it measures:
The number of exceptions granted to standard policies and procedures over a given period.
Why it matters:
Frequent exceptions may signal weaknesses in policy design, insufficient controls, or cultural resistance to compliance.
2. Incident Response Time
What it measures:
The average time it takes to detect, report, and remediate compliance or security incidents.
Why it matters:
A slow response can increase regulatory risk, financial loss, and reputational damage. Fast response times reflect operational readiness and strong incident management.
3. Number of Open Audit Findings
What it measures:
The total number of unresolved issues identified during internal or external audits.
Why it matters:
Persistent open findings suggest a lack of accountability and corrective action — and can draw scrutiny from regulators.
4. Percentage of Employees Completing Compliance Training
What it measures:
The proportion of employees who have completed required compliance and security training within a set timeframe.
Why it matters:
Training completion is a critical indicator of compliance culture and frontline risk awareness.
5. Risk Assessment Completion Rate
What it measures:
The percentage of scheduled risk assessments completed on time across the organization.
Why it matters:
Failure to complete assessments on schedule can leave the firm blind to emerging risks and gaps in controls.
6. Number of Reported Incidents (by Type)
What it measures:
The count of reported compliance, data privacy, or cybersecurity incidents, categorized by severity or source.
Why it matters:
Tracking incidents over time helps identify patterns, allocate resources, and measure the effectiveness of prevention efforts.
7. Vendor Risk Assessment Scores
What it measures:
Risk ratings assigned to third-party vendors based on due diligence and ongoing assessments.
Why it matters:
Vendors and third parties introduce significant compliance and cybersecurity risks. Regular scoring ensures you know where your biggest exposures are.
8. Control Effectiveness Score
What it measures:
An evaluation of how effectively key controls mitigate identified risks (often determined during audits or assessments).
Why it matters:
Controls are your last line of defense — understanding their effectiveness helps prioritize improvements and resource allocation.
9. Time to Remediate Issues
What it measures:
The average duration between identifying an issue (e.g., audit finding, policy violation) and resolving it.
Why it matters:
A long remediation timeline indicates weak governance and can signal to regulators that your firm is not taking corrective action seriously.
10. Regulatory Exam Readiness Score
What it measures:
An internal score or readiness assessment reflecting how prepared the firm is for a regulatory exam (e.g., SEC examination).
Why it matters:
Regularly assessing readiness can help avoid last-minute scrambles and reduce the risk of findings during an actual exam.
Why These Metrics Matter
These metrics do more than keep score — they give compliance leaders data-driven insights to:
- Identify areas of risk before they become serious issues
- Report confidently to leadership and boards
- Demonstrate a proactive approach to regulators
Foster a culture of accountability and continuous improvement
How to Automate and Visualize GRC Metrics
Manually tracking these metrics in spreadsheets is time-consuming and error-prone. With modern GRC technology, you can: Automate data collection and updates, reducing manual effort. Visualize KPIs in dashboards, making it easier to spot trends and outliers. Set up real-time alerts, so critical issues are addressed immediately. Generate audit-ready reports at the click of a button.
In a world of growing complexity and scrutiny, knowing — and showing — how your GRC program performs is critical. By tracking these top 10 metrics, you’ll strengthen oversight, reduce risk, and build greater confidence among clients, stakeholders, and regulators.